The marginal propensity to import (mpi), where M = imports, is defined as

Name: The marginal propensity to import (mpi), where M = imports, is defined as
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Question

Quizplus · Accepted Answer

The marginal propensity to import (mpi) measures the change in imports associated with a change in income. It is calculated as the change in imports (ΔM) divided by the change in income (ΔY). Therefore, the correct choice is D, which is ΔM/ΔY.

The Marginal Propensity to Import (Mpi), Where M = Imports